Tuesday is shaping up to be a tough one for tech stocks, after a sale greeted investors to start the week.
Nasdaq Composite,
– up 40% in the last 12 months – months down 2.5% due to concerns about high bond yields that could make technology stocks seem expensive. When so-called “risk-free” returns increase, it is much more difficult to justify valuations of stocks that appear high.
Smaller technologies in the premarket are the manufacturer of electric cars Tesla TSLA,
decreased by 6% after a decrease of about 8% months. Our call of the day comes from Saxo Bank’s chief strategy officer Peter Garnry, who warned customers that Tesla is embroiled in a “risk cluster” involving bitcoin and Cathie Wood’s ARK Investment Management.
Tesla announced a $ 1.5 billion bitcoin investment earlier this month. Along with Tesla’s weakness, bitcoin fell 10 percent early Tuesday, which some attributed to criticism from Treasury Secretary Janet Yellen (see below). This cryptocurrency drop “will obviously illustrate the volatility of the gains that Elon Musk delivered to Tesla,” Garnry said.
Read: Tesla bitcoin gambling has already earned $ 1 billion, more than 2020 profit from car sales, analyst estimates
Meanwhile, Tesla “is also the largest position in all ARK Invest ETFs, which have added pressure to its largest fund, ARK Disruptive Innovation Fund ARKK,
losing 6% yesterday. This is exactly the risk group we were concerned about he wrote about two weeks ago“The strategist said.
Read: The stock is not in a balloon, but here it is, according to fund manager Cathie Wood
In the Saxo note, which sank into the hugely popular, actively managed funds, Garnry emphasized ARK’s focus on biotech names, which he said could be risky if the market decides to reverse. And Tesla shares account for 6.7% of total assets under management of ARK’s five actively managed ETFs, according to Saxo data analyzed two weeks ago.
“What this means is that a stock correction, for whatever reason, could be higher interest rates or prolonged blockages of COVID-19, could trigger sales in either biotechnology or Tesla stocks and could cause performance deterioration, which could start the AUM net output and then the feedback loop began, ”Garnry said at the time.
For his part, Wood, CEO of ARK Invest and manager of the popular exchange-traded fund ARK Innovation, said last week that she was surprised by how quickly bitcoin companies adopt and that “her confidence in Tesla has grown.”
markets
ES00 futures,
YM00,
NQ00,
are declining, led by technology, with European SXXP shares,
sinking apart from some travel stocks. Asian markets had a mixed day 000300,
CL00 oil prices,
are increasing, while the yield closely followed the 10-year treasury note TMUBMUSD10Y,
it trades at about 1.35%.
Chart
Treasury Secretary Yellen could have left some bitcoin BTCUSD steam,
after repeating some concerns about cryptocurrency in an interview with the Newbook Times’ Dealbook. Bitcoin fell 13% last time to $ 47,909, taking with it a bunch of other cryptocurrencies.
Buzz
All eyes on Federal Reserve Chairman Jerome Powell, who kicks off the two-day testimony on Capitol Hill. With more than 10 million Americans still unemployed, “Mr. Powell will go out of his way, I’m sure, to lie down and rightly so, while I’m afraid to think about what a taper-tantrum in the 2020s will look like, “said Jeffrey Halley, senior market analyst. Asia Pacific, Oanda.
We will also receive the latest housing construction indices from S&P CoreLogic Case-Shiller and the Federal Housing Finance Agency, along with an update on consumer confidence.
Shares of Home Depot HD Retailer,
they are declining despite optimistic results.
Shares of the special purpose procurement company Churchill Capital CCIV,
also known as the “blank-check company”, it sinks in the premarket. After weeks of rumors, Churchill finally announced a deal to buy electric vehicle company Lucid Motors.
Weeping over 500,000 American lives lost to COVID-19, President Joe Biden observed a moment of silence on Monday and urged the public to “mask”.
Facebook social media group FB,
says it will re-establish links to news articles in Australia five days after the proposed changes to the country’s media legislation.
Random reading
“I can do obscenities against people and they have no clue.” Pandemic positive returns.
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